The resistance is at the 61.8 percent Fibonacci retracement on the fall from $7.29 to $7.10-1/2, strengthened by another one provided by the upper channel line of a falling channel.

A break above the resistance will signal the channel has been violated and the fall from $7.76 will be totally reversed.

Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.

No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.